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Weekly highlights

Pension Reform: The time bomb soon to be defused?

Dirhams (202 USD) for the Natio- two clusters, one public and one
nal Social Security Fund (CNSS) private, one basic scheme, as well
versus 5,678 Dirhams (567 USD) as additional ones. Such a scheme
for the RCAR (Collective Retire- requires the unification of calcu-
ment Allowance Scheme) and 7,873 lation methods and rules to ensure
Dirhams (787 USD) for the civil convergence, reduce disparities, and
pension scheme managed by the grant fair remuneration in relation to
Moroccan Pension Fund (CMR). the contributions paid. In any case,
The rules for valuing pensions are this titanic project will first require
also heterogeneous, while a large a re-parameterization of the dif-
part of private sector employees ferent pensions schemes. That said,
can recover the wage share if they the scenario suggested by the study
do not have the minimum of 3,240 commissioned by Finance proposes
days of contributions. At this level, a basic scheme capped at twice the
the agreement reached in April pro- minimum wage for the two clusters,
vides for the reduction the minimum one public and one private. This
number of declared days giving en- should facilitate later on to a single
titlement to an old-age pension at cluster. Added to this is the freezing
1,320 days and the reimbursement of rights acquired in the current sys-
of the employer’s and employee’s tems as well as any revaluation for
share for insured persons who have 10 years. Other proposals include
not reached this threshold, except raising the retirement age to 65 in
that the terms of implementation the private and public sectors and
have not yet been set out! Until increasing contributions. In any
then, with the exception of the para- case, the debates and discussions
metric reform of the civil servants’ awaiting changes which should gua- rall scheme adopted several years promise to be interesting! o
pension scheme, the other funds are rantee their sustainability. The ove- ago remains the establishment of KHADIJA MASMOUDI

The boomerang effect of competition law

H OW can the latest decisions had organized itself to maintain the
public service through digital tech-
of the Competition Council
be explained? First, it should
and LSF11 Skyscraper Investments
be said that History does not forget nologies. So why have Sika AG
anything. In addition, the competi- being sentenced? For not having
tion regulator came to clear up a lia- complied with the law relating to
bility. Some explanations are needed freedom of prices and competition,
here: First episode: the Competition although the respective deals of the
Council had closed its last session in two companies were entered into in
October 2013. The terms of office of December 2019, that is to say after
its members were coming to an end. the reactivation of the Council and
At the same time, the review of the before the health crisis. Law and
law that has governed it since 2000 time therefore ended up catching
was under consideration in Parlia- up with the two companies. It is
ment. Second episode: the regulator Until September 29, 2022, the Competition Council sanctioned three companies that did not notify in the boomerang effect. What are the
advance their economic concentration operations
had entered a period of forced hiber- risks run by people who choose not
nation until almost the end of 2018. Fourth episode: several currents have tion projects or notified such projects to declare their transactions carried
Its members were not renewed, while emerged in this troubled context. even if the regulator was inactive. out from January 1, 2019 to the end
in the meantime the new competition Some companies, like LafargeHol- The market and the investors had of 2022? To take the risk of being in-
law was published in the Official Ga- cim, have decided to comply with largely suffered from this institutio- flicted a financial penalty, with also
zette of July 24 and August 7, 2014. the law by notifying their operations nal deadlock. The Government had the collateral damage on their reputa-
Third episode: the operators were to the Government. Before the 2014 a great deal of responsibility until the tion. “Certainly, there is the five-year
confused about economic concentra- law, the Head of Government played appointment of Driss Guerraoui and statute of limitations, but in the world
tion. They had the obligation to no- a role in terms of control of concen- of the new members of the Council of business everything ends up being
tify them in advance to the regulator. tration... The other current decided four years after the legislative reform known and the Council will do eve-
The situation was paradoxical: new to ignore the law by carrying out the in November 2018. Fifth episode: rything to detect possible fraudsters”,
law, a Board without members and deal, even if it meant taking risks, Clearing up this historical liability promises its general rapporteur. Kha-
legal liability of companies and their thus considering that the Govern- which would sooner or later reappear lid Bouayachi and his investigators
managers. “The market runs on its ment no longer had a say and that the as we predicted ten years ago. Of acted on their own initiative in the
own…”, according to the famous for- Council is in a state of coma. A third course, the health crisis has turned the latest case. LSF10 Flavum Holdings
mula of its former president, Abdelali current has opted for caution by sus- administration upside down and not was fined 10.6 million MAD.o
Benamour. pending their economic concentra- only that. The Competition Council Faisal FAQUIHI

Friday 7 October 2022